Catch-22 In The Petroleum Market?
Analyst Says Improved Economy Brings Higher Gasoline Prices
The good news on the economy may be the bad news on gasoline prices.
That's according to Patrick DeHaan, Senior Petroleum Analyst, GasBuddy.com, who says an improved economy is encouraging investment in the price of oil and gasoline futures. The AAA Fuel Guage report finds a 19% increase in the last two months. That's putting pressure on retail prices which have risen 7.2% in the same period.
DeHaan says sabre-rattling by Iran might also be impacting the market, but he says that's not a principle factor.
"I don't think the Middle East has a whole lot to do with it," said DeHaan. "Rather, the improving economy--speculation that the economy will improve, better than expected jobless numbers, better than expected news respecting people looking for work."
DeHaan says investors always react to news on the economy. When the news is good, he says, stock and oil prices rise. When the news is bad, prices fall.
"The tug of war seems to be being won now by better economic news," he said.